The encoded application should not be bound to a particular IP or it would be very inconvenient to redistribute it to multiple customers.
What application is bound to is license. You can generate licenses for your customers on-the-fly using command line tool or pre-generate them in GUI.
See License manager tab -> Create new license -> lock to IPs input.

Thanks very much for your reply.
I want to assign it to my whole sub-net /24, but your right a program for the broader spectrum of the Internet it is not a good plan
I just don't want this program to run anywhere else

I thought the problem with the license manager is that it restrict functions in the program which I don't want of course and license is time based?
Also do I need to add extra coding in my program to check for the license?

You can add any hidden values (name-value pairs) to the license (see cmd line options) and check them in run-time.
Otherwise, no, you don't need to perform any checks. All values like "allowed IPs" or time resrictions are not accessible anyway.

NOTE: only encoded scripts covered by a license can access values stored in the license.

Either populate all 254 values xxx.xxx.xxx.1 through xxx.xxx.xxx.254 in the input (they will be checked very fast), or check address in your code with basic values stored in the license or built into the code.

I hope your joking, populating all IPs is no option with 4 possible sub nets.

It is saying this in the manual: lock the license into server software settings.
License will work only for servers accessed with specified IP address(es).
Wildcards are acceptable, for example --lip 217.217.217.5,217.217.216.*

* The cmd version comes with same error: Fatal error: Invalid IP(s) specified.

P.S. there are 2 spelling errors in the options for obfuscation level:

We are talking about hosting on cPanel servers, so the hosting package can be on any free IP, but def. not on a shared main IP.

Listen, you write on your website and in the manual that it is possible to give Wildcards.
This was one of the criteria to buy it, now you say it doesn't work.
Now I ask you what is wrong with my money?
Nothing, so please fix this bug, shouldn't be to much of a problem for you guys isn't?